Transcript Document 7303802

October 10-13, 2006• San Diego Convention Center, San Diego California
How to Calculate Your Brand
Ambassador’s Bottom-Line Value
The Strategic Value of the Call Center,
Agents and Self-Service
www.callcenter20.com
Customer Experience & Customer Lifetime Value
October 10-13, 2006• San Diego California
Driving Forces
– Call Center, Agents, Self-Service
• Cost Cutting, Do More With Less, Outsource…
• Not seen as a strategic business component…
– Brand Equity and the Customer Experience
• Customer Relationship and Customer
Experience Management
• The Customer Experience Increases
Profitability
• Customer Experience is Created by:
» Agents
» Call Center Agents
» Self-Service
October 10-13, 2006• San Diego California
In Opposition?
Call Center & Agents & Self-Service
vs.
Brand Equity & The Customer
Experience
Let’s look at some trends to help
define a strategy that will enhance the
customer experience and increase
the value of the brand ambassador…
October 10-13, 2006• San Diego California
What is Required?
If we believe that the call center,
the agents and self-service are
our brand ambassadors…
What decisions would need to be
made or made differently to
accomplish this?
October 10-13, 2006• San Diego California
Science of Decisions
October 10-13, 2006• San Diego California
Trend #1:
Customer Experience Management
• The sum of a customer’s experience
overtime
• Strategic management of customer
touch-points
• Reflects your customer’s identities,
needs, wants…
• Grows customer equity…
Decision#1:
What is your company’s
customer experience
management strategy?
October 10-13, 2006• San Diego California
Trend #2:
Value of Customer Experience
“Companies can differentiate based on:
• Core Product Or Service
• Price
• The Customer Experience.
The first two are nearly impossible to do
today.
The only brand differentiator left? The
customer experience.”
Decision#2:
What differentiator is your
company focusing on?
October 10-13, 2006• San Diego California
Trend #3:
Contact Center & Brand Image: Customer Experience
• 63%- After a bad experience they would stop
using a company in the future
• 92%- form their opinion about the company and
brand by their customer experience
Customer Experience
Resolved problem quickly
Had answers to my questions
Had complete account info
Minimum callbacks needed
Knew my name
Call was brief
Efficient call transfer
Brand Enhancing
Decision#3:
What kind of
experiences does
your company
want your
customers to
have?
October 10-13, 2006• San Diego California
Which touch-points do our customers want?
“By 2012, <1% of
organizations will
be able to
effectively
Manage a realtime multi-channel
experience.”
Gartner, 2005
Video
October 10-13, 2006• San Diego California
Trend # 4:
A Customer Experience Strategy Plan
Web
?
Each
Touch-point:
Creates the
Overall
Customer
Experience
Email
Chat
Fax
Agent
IVR
?
?
?
?
?
Customer Data
Repository
Customer Experience
Strategy
Marketing
Sales
Service
Decision#4:
Which
touchpoints
do your
customers
want/need?
Customers’ Interaction Lifecycle
October 10-13, 2006• San Diego California
Trend #5:
Integration of Touch-points
What happens if the
customer experience
is off…on only on one
or two touch-points?
“Through 2010, >80% of
CRM strategies will fail to
articulate the brand values via
the customer experience.”
--Gartner, 2005
Video
Decision #5:
Are all your
touch-points integrated?
October 10-13, 2006• San Diego California
Trend #6:
Satisfaction vs. Loyalty
Industry*
Satisfied
Loyal
Electronics, Home Improvement and Drug
Stores
90%
50%
Communications Services: Wireless Service,
Wireless Handsets, Internet Service Providers,
Local Voice And Long-distance Carriers
75%
48%
Information Technology: IT Decision Makers,
Influencers And Staff
84%
44%
The Walker Loyalty Report*
Satisfied = Loyalty (Revenue)
Decision #6:
What is your company
focused on loyalty or
satisfaction?
October 10-13, 2006• San Diego California
Trend #6:
What Matters To Your Customers?
Industry
Electronics, Home Improvement and Drug
Stores
Communications Services: Wireless
Service, Wireless Handsets, Internet
Service Providers, Local Voice & Longdistance Carriers
Information Technology: IT Decision
Makers, Influencers And Staff
“Through 2010, organizations that
fail to build strong customer relationships
will erode their competitive position by
15-20%/year.”
--Gartner, 2005
What Matters =
Customer Experience
Product variety, Ease of Finding
Products, Sales Associate
Professionalism, Customer
Service, Time at Check-out…
Customer Service, Ease of
choosing products…
Quality Of Product, Purchase
Process, Technical Support,
Service And Consulting…
Decision #6:
What is your company
focused on loyalty or
satisfaction?
October 10-13, 2006• San Diego California
Trend #7:
Marketing, Sales and Service Teams
Customer LifeCycle
Company’s Departments
Customer Acquisition
MARKETING- Awareness and Consideration:
Learning and Persuasion
Customer Attainment
SALES-Purchase: First-time usage, usability and
delivering on the promise
Customer Retention
SERVICE-Service and Repurchase: Long-term
usage and satisfaction and positive word-of-mouth
Decision #7:
Are we integrating marketing,
sales and service into a synergistic
team to create a consistent and
great customer experience
through out the lifecycle of the
customer?
October 10-13, 2006• San Diego California
Trend #8:
Self-Service: As A Great Customer Experience = KM
Natural Language Programming
• Understanding The Request Must
– Utilize linguistic tools to decipher the request
and then
– Create a transaction to send keywords to the
knowledge base for solutions
• Preparing The Answer Involves
– Understanding what the customer needs
– Collecting data from enterprise systems and
business rule servers and then
– Composing an answer to send to customer
October 10-13, 2006• San Diego California
Trend #9:
Search Methods of Knowledge Bases
Search
Method
Basic
Search
Guided
Search
Keyword
Phrase
Match
CBR
Decision Tree
Linguistics
NLP
Intent
Driven
NLP +
Intent
Search
Parameters
Content
Content
~Context
Content
Context
Content
Content
Intent
Search
Results
Many
Few
Few
1:1
October 10-13, 2006• San Diego California
Trend #9:
Search Methods of Knowledge Bases
Basic
Search
Search
Method
Search
Parameters
Search
Results
Keyword
Phrase
Match
Guided
Search
Linguistics
CBR
NLP
Decision Tree Decision #9:
What kind of knowledge
management
your
Content
Contentsystems is
Content
~Context
company using
to create aContext
great
experience?
Many
Few
Few
Intent
Driven
NLP +
Intent
Content
Content
Intent
1:1
October 10-13, 2006• San Diego California
Trend #10:
Self-Learning Knowledge Management Systems
80
70
60
50
With Self-learning
Without Self-Learning
40
30
20
10
0
Time
Decision #10:
Is the knowledge
management system
self-learning?
October 10-13, 2006• San Diego California
Trend #11:
Knowledge Management and Databases
• Understanding The Request
•
Decision #11:
For self-service to create a great
– Utilize linguistic tools
to decipher
the
request
customer
experience,
need
reliable,
accurate
consistent data..
– Create a transaction to send
toand
knowledge
-- Data Quality
base
-- Data Integration
-- Data Maintenance…
Preparing The Answer
Or a Single View of the Customer
– Understanding what the customer needs
– Collecting additional info from enterprise systems
and business rule servers (where is the data?)
– Composing an answer
– Send to customer
October 10-13, 2006• San Diego California
Trend #12:
Feedback -- Continuous Re-Invention & Innovation
“95% Collect Feedback
50% Alert Staff of Findings
30% Make Decisions Using This Insight
10% Deploy and Improve
5% Inform Customers of the Changes.”
-- Gartner, 2005
“Through 2010, organizations without
an EFM-based approach to feedback
management will spend 40-50% more on
technology and changing processes.”
October 10-13, 2006• San Diego California
Trend #12:
Feedback -- Continuous Re-Invention & Innovation
To create a great customer experience requires
an Enterprise Feedback Management System –
EFM
VOC initiatives are necessary…
Right people, right info, right changes to the
business to even be able to strategically stay
ahead of the competition…
Decision #12:
What is your company’s plan for
VOC, EFM… to get the right
information to the right people?
October 10-13, 2006• San Diego California
Trend #13:
Customer Lifetime Value- ROC
•Who are your customers?
•Did you define your customer segments?
•What is their customer lifetime value?
Video
•How much do they spend?
•For how long?
•And how can you increase
both?
October 10-13, 2006• San Diego California
Trend #13:
Customer Lifetime Value- ROC
Customers = 2M
Annual Revenue = $200M
Average annual revenue/customer = $100
22% have a bad experience….
Poor Experience 440,000
22%
Customers
Positive
Experience
78%
October 10-13, 2006• San Diego California
Trend #13:
Customer Lifetime Value- ROC
22% have a bad experience…
2% Complain
98% Don’t Complain
2%
Complain
8,800
Customers
Poor Experience 440,000
22%
Customers
Positive
Experience
78%
98%
Don’t
Complain
431,200
Customers
October 10-13, 2006• San Diego California
Trend #13:
Customer Lifetime Value- ROC
22% have a bad experience…
Loss = $19.6 Million
Potential Loss = $24 M
2%
Complain
8,800
Customers
At risk: 34%
2,992 customers
$299,200
Defect: 28%
2,464 customers
$246,400
Resolved: 38%
Poor Experience 440,000
22%
Customers
Positive
Experience
78%
98%
Don’t
Complain
431,200
Customers
At risk: 55%
Defect: 45%
237,160 customers
$23,716,000
194,040 customers
$19,404,000
October 10-13, 2006• San Diego California
Trend #13:
Customer Lifetime Value- ROC
22% have a bad experience…
Loss = $19.6 Million
Potential Loss = $24 M
2%
Complain
Poor Experience 440,000
22%
Customers
Positive
Experience
78%
98%
Don’t
Complain
8,800
Customers
At risk: 34%
2,992 customers
$299,200
Defect: 28%
2,464 customers
$246,400
Resolved: 38%
Decision #13:
Is your company adding
customer lifetime value and
return on the customer to the
237,160
customers
balance
sheets?
At risk: 55%
431,200
Customers
$23,716,000
Defect: 45%
194,040 customers
$19,404,000
October 10-13, 2006• San Diego California
Trend #14:
McKinsey Study: Project ROI-Change Management
• High ROI Projects: 143% ROI
• Excellent Change Management Capabilities
–
–
–
Senior and middle managers and frontline employees were
all involved
Responsibilities were clear
Reasons for the Consensus Building were understood
throughout the organization
• Low Project ROIs: 35%
• Poor Change Management Capabilities
–
–
–
Lack of commitment and follow through by senior executives
Defective project management skills among middle managers
Lack of training for and confusion among frontline employees
McKinsey Quarterly, 2002
October 10-13, 2006• San Diego California
Trend #14:
McKinsey Study: Project ROI- OCM
• High ROI Projects: 143% ROI
• Excellent Change Management Capabilities
–
–
–
Senior and middle managers and frontline employees were
all involved
Responsibilities were clear
Reasons for the Consensus Building were understood
throughout the organization
• Low Project ROIs: 35%
• Poor Change Management Capabilities
–
–
–
Lack of commitment and follow through by senior executives
Defective project management skills among middle managers
Lack of training for and confusion among frontline employees
Decision #14:
Does your company use a change
management methodology on all
projects to ensure the highest possible
ROI?
McKinsey Quarterly, 2002
October 10-13, 2006• San Diego California
Trend #15:
Customer-Centric Brand Experiences Rule All Decisions
Brand Experience
October 10-13, 2006• San Diego California
Trend #15:
Customer-Centric Brand Experiences Rule All Decisions
Brand Experience
Decision #15:
What over
riding factor
is used to
make
decisions in
your
business?
October 10-13, 2006• San Diego California
Trend #16:
Plan to Plan, Then Follow the Plan
•
•
•
•
•
•
•
•
•
Determine Customer Experience
Determine Who are Your Profitable Customers
Determine Customer Touch-points
Create Knowledge Base/Upgrade the
Databases
Test on One Touch-point and Make Changes
Incorporate Lessons Learned / Pilot on Other
Touch-points
Implement on all selected Touch-point
Collect Feedback and Continuously Improve
Repeat for the life of your company
October 10-13, 2006• San Diego California
Trend #16:
Plan to Plan, Then Follow the Plan
•
•
•
•
•
•
Determine Customer Experience
Determine Who are Your Profitable Customers
Determine Customer Touch-points
Create Knowledge Base/Upgrade the Databases
Test on One Touch-point and Make Changes
Incorporate Lessons Learned / Pilot on Other TouchDecision #16:
points
Does your company
• Implement on all selected Touch-point
• Collect Feedback and Continuouslyhave
Improve
a plan and use
• Repeat for the life of your company the plan to guide
the business to
make the customer
experience the
#1 priority?
October 10-13, 2006• San Diego California
The Only Decision Left?
Make the Customer Experience Job #1
Great Customer Experiences Create
Loyal Customers…
Loyal Customers Create Brand Equity…
Brand Equity Creates Growth,
Revenue and Profits…
Are You On The Path to Create More
Loyal Customers?
October 10-13, 2006• San Diego California
Thank You!
[email protected]
www.hitachiconsulting.com
October 10-13, 2006• San Diego California